JV Lands $415M Refi for Brooklyn Tower
Development costs for this luxury project are estimated at $710 million.
The Brodsky Organization, in a joint venture with Greenland USA, has received a 10-year fixed-rate $414.8 million Freddie Mac refinancing loan for Brooklyn Crossing, an 858-unit luxury multifamily community in Brooklyn, N.Y. The financing was provided by M&T Realty Capital Corp.
The project’s total development costs rose up to $710 million and generated nearly 3.9 million hours of union construction work. M&T Bank originated the $460 million construction financing, according to Yardi Matrix data.
Rising 51 stories, Brooklyn Crossing encompasses studio, one- to three-bedroom floorplans ranging between 450 and 1,100 square feet. Amenities include 24-hour concierge, children’s playrooms, a gym, a media and screening room, a rooftop lounge and swimming pool, workspaces, office suites, a library lounge, as well as a sky den and lounge. A total of 258 units are affordable, reserved for residents earning up to 130 percent of the average median income.
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M&T Realty Capital Corp. Senior Vice President Robert Barry led the transaction and collaborated with M&T Bank Senior Vice President Andrea Wagonseller.
Located at 18 Sixth Ave. in Kings County, the building is 2 miles southeast of the Brooklyn Bridge, as well as 1 mile north of Prospect Park and roughly 5 miles east of the Statue of Liberty. Atlantic Center Mall, a 35-store shopping center, is right across the street from Brooklyn Crossing.
Brooklyn residential development
According to the Office of Brooklyn Borough President, the neighborhoods north of Prospect Park have the highest AMI in Brooklyn, ranging between $123,000 and $232,000. From 2010 to 2020, Brooklyn’s job growth saw a significant expansion, burgeoning by 47 percent, the same source reveals. Healthcare and education make up 29 percent of the borough’s jobs, with employers such as The Brooklyn Hospital Center and NYC Health + Hospitals located in a 3 mile radius of the community.
On a trailing three-month basis through November, Brooklyn rents were up 0.2 percent, bucking national trends and surpassing the U.S. rate by 40 basis points, a recent Yardi Matrix report reveals. As of November, rents rose by 4.9 percent in the borough on a year-over-year basis, exceeding the national average of 0.4 percent in growth.
Brodsky’s Brooklyn footprint comprises roughly 1,600 units, according to Yardi Matrix data. The company is developing 499 President St., a 350-unit multifamily community in the Gowanus neighborhood. The development received a construction loan of $155 million from M&T Bank and the Bank of New York. Completion is expected in 2025.
